SteelOrbis has been predicting that the late-summer run-up on domestic HRC prices would not last, as mill output continues to exceed demand. Current demand levels, which have remained steady yet unexciting, are not expected to shift dramatically in the near term.
Such market factors, combined with soft scrap pricing during this month’s buy cycle, have placed additional downward pressure on the flat rolled steel market. Last week’s US domestic HRC pricing, which in the range of $28.50-$29.00 cwt. ($628-$639/mt or $570-$580/nt), have once again shifted downward, with sources indicating that “HRC is definitely below $28 cwt. ($617/mt or $560/nt) ex-mill.”
Sources tell SteelOrbis it is still likely that US HRC will likely settle between $25-$27 cwt. ($551-$595/mt or $500-$540/nt) ex-mill before the end of the year.